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Cotton Prices Continue To Slump &Nbsp; &Nbsp; Clothing Prices Will Not Drop Or Rise

2012/3/23 13:07:00 15

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Cotton Price Down

Cotton prices, which have been in the doldrums for about a year, have not been raised in this traditional peak season.

Since late February last year,

Cotton price

The decline has exceeded 40% so far.

Other fiber prices, such as viscose fiber and polyester staple fiber prices also showed a different range of decline.

A number of research reports show that 2011/2012 cotton is in a rather surplus state in recent years, and the downstream demand is weak. The market is generally not optimistic about the cotton market.

However, as the cost of raw materials continues to decline, the price of many brands will not go down.

The latest research report of the first textile network shows that Bosideng, Yalu, and red beans and other enterprises are affected by the rising cost of raw materials and manpower, and the price of new clothing ranges from 10% to 20%.

Analyst Wang Qian pointed out that although the price of cotton has gone down, the price of raw materials such as down, chemical fiber and wool has not dropped.

It even showed an upward trend.

At the same time, labor, pportation and other price increases will form a "resultant force" to push up clothing prices.

In particular, labor costs, Guangdong clothing industry research shows that after the Spring Festival of 2012, the average operating rate of garment enterprises in Guangdong was around 70%, with a shortage of more than 30%.

Areas like Jiangsu, Zhejiang and Bohai are also facing the problem of lack of jobs. Enterprises can only raise substantially.

The Yangtze River Delta and the Pearl River Delta continue to rise this year, following the 2011 general wage increase of 20%~30%.

Under the price of raw materials

In the long run, it can reduce the cost of garment enterprises, but it will not be immediately reflected in the terminal sales link. The garment industry has to face about half a year's difference from yarn sourcing to fabric production and retail sales.

From the industry point of view, the price increase of garment enterprises mainly depends on the price, not the cost.

Last year, under the background of price, store rent and labor cost increase, price adjustment is an inevitable choice for enterprises.

Besides, some brand enterprises also hope to enhance brand positioning by raising prices and narrow the distance between them.

The high cost of intermediate links has also been the driving force for the rise in clothing prices.

Domestic clothing

Most of the distribution channels should go through four stages: manufacturer, brand agent, department store and consumer.

Generally speaking, after entering the brand agent stage, prices of clothing begin to soar.

The reason for this is that when the agents purchase goods from the manufacturer at the price of 2~3 discount, they should give the department store 30%~40% the buckles, plus the salesman's wages, entrance fees, promotional expenses, logistics costs, commodity storage fees, taxes and other gray charges for dredging channels, so the price of clothing entering the sales terminal has been greatly pushed up.